Today, investors in The Metals Company (NASDAQ:TMC) and TMC stock are seeing quite a bit of selling. Currently, shares of this battery player are down nearly 6% at the time of writing.
For this relatively new stock, today’s price action represents a continuation of a trend. Since the company’s special purpose acquisition company (SPAC) merger on Sept. 10, shares of TMC stock have sunk more than 50% below the company’s initial public offering (IPO) reference price. Additionally, shares of TMC stock are now down more than 70% from their peak just a few weeks ago.
As a de-SPAC stock, perhaps this price action makes sense. Indeed, investors are largely looking at larger-cap stocks for growth of late. Various speculative high-growth stocks are being viewed as too risky to hold in this rather uncertain period. With the debt ceiling fiasco ongoing, and interest rates reflecting this uncertainty, growth investors appear to be seeking safety today.
That said, there’s some news with The Metals Company that may be getting lost in the noise. Let’s dive into one key update investors considering TMC stock may want to consider.
Battery Metals Update Doing Little to Stop Bleeding with TMC Stock
Among the reasons for the decline in TMC stock in recent weeks has been concern about the environmental impact of deep-sea mining. As a company focused on recovering eco-friendly metals from the sea floor, this view is understandable.
That said, investors bullish on the long-term viability of this form of mining may like the company’s recent update. Today, the company announced it has commenced work on pilot demonstrations to show how its mining process works. The company will attempt to extract critical battery metals from seafloor rocks. These metals include copper, nickel and cobalt.
If The Metals Company is successful in doing so effectively, this is a stock that could show promise. That said, investors appear to be overly bearish on the outlook for this stock. So much so, this announcement appears to be one that’s going unnoticed by the market today.
The Metals Company notes that these pilot demonstrations will bring TMC one step closer to production. If the company can get to scale, TMC stock will prove to be an intriguing one to watch.
Is now the time to buy this stock that has sunk to rock bottom? Time will tell.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.